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Goodyear Tire & Rubber

Goodyear shares get big bump on strong Q3 earns

James R. Healey
USAToday
Brayden Wienke stacks Goodyear tires at Texas Motor Speedway in Fort Worth, Texas, in April. Goodyear is well-known for supplying race tires. Its third-quarter earnings were higher than analysts forecast, despite revenue and sales drops.

Goodyear Tire & Rubber shares rolled on early news of third-quarter earnings that blew away forecasts, even though revenue tumbled.

Goodyear shares close the day up 5.4%, at $23.03.

Earnings before special items were $242 million, or 87 cents per share, well more than the 70-cent consensus, and a blow-out compared to J.P. Morgan's pessimistic 62 cents.

The "significant 3Q beat," as industry analyst Ryan Brinkman at JPM put it, was despite lower revenue due to fewer tire sales and some currency exchange losses.

Goodyear said it sold 41.9 million tires in the quarter, down 2%. Revenue was $4.7 billion, down from $5 billion.

In North America, its strongest market, Goodyear said it earned $210 million, up from $161 million a year earlier, despite a decline in tire sales because "markets were disrupted due to significant stockpiling of imported low-end tires in advance of potential tariffs being imposed in 2015."

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